Influence on loyalty programme effectiveness : A conceptual framework and case study investigation

A Palmer, U McMahon-Beattie, R Beggs

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

This paper explores the effects of market structure on the effectiveness of loyaltyprogrammes. A literature review led to the proposition that effectiveness isdependent upon firms’ existing customer information deficit and their ability tosegment markets with differentiated products. A case study examines two sectorswith differing market characteristics: civil aviation and car ferries. Loyalty programmesappeared to be less successful in the latter, where information aboutcustomers was more readily available than for airlines. Opportunities for segmentationwere less. Although questions are raised about how the effectiveness of a loyaltyprogramme can be measured, the proposition that market characteristics caninfluence the effectiveness of a loyalty programme is accepted.KEYWORDS: Loyalty; market structure; segmentation; effectiveness; civil aviation; passengerferries
Original languageEnglish
Pages (from-to)47-66
JournalJournal of Strategic Marketing
Volume8
Issue number1
DOIs
Publication statusPublished - 2000

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